When should the borrower receive the Closing Disclosure?

A borrower has been approved for a new home loan and has completed all necessary paperwork.

When should the borrower receive the Closing Disclosure?
A . 4 business days prior lo consummation
B . 3 business days prior to consummation
C . 1 business day prior to consummation
D . On the day of consummation

View Answer

Answer: B

Explanation:

According to the TILA-RESPA Integrated Disclosure (TRID) rule, the borrower must receive the Closing Disclosure (CD) at least 3 business days prior to loan consummation. This waiting period gives the borrower adequate time to review the final terms and costs associated with the mortgage loan. If there are significant changes to the terms of the loan after the CD is issued, a new 3-day waiting period may be required.

References:

TILA-RESPA Integrated Disclosure Rule (TRID), 12 CFR §1026.19(f)

CFPB Closing Disclosure Guidelines